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Adani settlement claims delayed by India regulator review of processes
Two sources with knowledge of the issue said that India's market regulator had put on hold the Adani Group and its offshore investors' requests to settle a number of regulatory charges, until the internal processes were reviewed. Last month, SEBI, where a new CEO took over in March, announced that it was reviewing the rules of settlement appeals. The review was prompted by a lack of uniformity and confusion in the rules governing the type of penalties that can be imposed. Second source with direct knowledge said that the review could last three months, after which Adani's appeals would be heard under a new process. SEBI's settlement procedure allows investors and market participants to pay a fine or accept regulatory directives without admitting or denying guilt. Sources declined to identify themselves as investigations and court cases are confidential. SEBI and Adani did not reply to emails seeking a comment. SEBI started investigating the Adani Group in 2023, after US shortseller Hindenburg accused the group of improper use of tax hashes and stock manipulating. This led to a $150 billion sale despite Adani's denials. Since then, the shares have recovered. The U.S. authorities have also indicted Gautam Adani, and the top executives of Adani Green. They claim that they paid bribes for Indian power supply contracts and lied to U.S. investors when raising funds. The company informed the stock exchanges of India on Monday that an independent review had not found any violation of the law by Adani officials. SEBI in India was investigating 24 allegations against group companies in India and their offshore investors. This was stated in a 2023 filing to the Supreme Court. Second source: Thirty Adani Group entities have filed applications to settle some regulatory charges. Source: The Adani appeals are part of over 300 pending settlement applications, but they are being considered as the most important ones. SEBI has accused Adani Enterprises, Adani Ports, Adani Energy, and Adani Power, of incorrectly classifying certain shareholders as being public, according financial statements filed by the four companies. Source: 26 other Adani Group and related entities were charged with reclassifying three Mauritius-based offshore funds' shareholdings as public shares when they were linked to Vinod Adani – brother of Adani Group Chairman Gautam Adani. According to Indian law, a minimum of one-fourth (or more) of the shares in a publicly listed company should be owned by public shareholders. The second source stated that these Adani entities wanted to pay a fine to settle the market infraction without proposing reclassifying the shares. The other source said that in order for the settlement to be finalized, Adani Group companies would have to reclassify the shares owned by these funds to non-public holdings. Separately, a dozen offshore fund invested in Adani Group companies were charged last year with violating disclosure rules and breaching regulatory prescribed investment limits. (Reporting and editing by Raju G. Gopalakrishnan; Jayshree Upadhyay)
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Wall Street Journal April 30,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Starbucks has announced that a new pilot program at dozens U.S. cafés has reduced the average beverage preparation by two minutes. The coffee chain plans to extend the initiative to another hundreds of its 10,000 U.S. stores by the fall. Amazon.com canceled a plan that would have shown how tariffs could raise the prices of its budget shopping website Haul, after U.S. president Donald Trump spoke to founder Jeff Bezos. The White House called this a "hostile" and "political" move. United Parcel Service is cutting 20,000 operational positions and closing 73 facilities leased or owned this year in order to cut costs. This comes after Amazon, the company's largest customer, reduced package deliveries. After nonprofits filed a lawsuit over the termination in March of a contract that provided congressionally-approved funds, a federal judge in California ruled the Trump administration had to continue funding attorneys for unaccompanied children migrant. President Donald Trump of the United States is asking Egypt to pay for the United States' military efforts to secure shipping lanes to the Suez Canal. This puts the already financially strapped country in an awkward political position. (Compiled by Bengaluru newsroom) - The Trump Administration has dismissed scientists working on the National Climate Assessment. This has prompted concerns from environmental groups and climate scientists as the government claims it needs to reassess the approach. (Compiled by Bengaluru Newsroom)
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Sources: RPT-Malaysia’s Petronas in talks with Commonwealth LNG for a term supply
According to four sources familiar with the matter, the Malaysian state-owned company Petroliam Nasional (or Petronas) is in discussions with Commonwealth LNG about buying liquefied gas from its Cameron, Louisiana facility. Petronas has been in discussions with Commonwealth LNG to purchase at least 1 million metric tonnes per annum of LNG. Two of the four sources declined to identify themselves as they weren't authorised to talk to the media. One source said that the talks are advanced for at least one mtpa. Several Asian nations plan to increase the contractual purchases of U.S. LNG in order to reduce the imbalanced trade with the United States, and avoid high reciprocal tariffs. Petronas previously stated that it would be expanding its global LNG pipeline to meet the growing demand and that some of its U.S. contracts may be sold on the spot market in Europe or Asia. Commonwealth LNG and Petronas have not responded to requests for comments. Commonwealth LNG is building a 9.5mtpa LNG facility in Cameron, Louisiana. The U.S. Department of Energy granted it an export license in February after waiting almost two years under the Biden Administration. Commonwealth has reported an increase in the interest of prospective buyers after obtaining its export license. Currently, the project has approximately 8 mtpa under contract or in consideration. This includes 2.5 mtpa from Woodside Energy, and 2 mtpa from Private equity firm Kimmeridge which purchased a 90% share of Commonwealth LNG. Petronas signed 20-year contracts for LNG at Venture Global's Plaquemines plant and with Cheniere Energy. Petronas also signed in December a 15-year agreement with ADNOC to supply 1 mtpa LNG. Deliveries are expected to begin as early as 2028. (Reporting from London by Marwa Rashed, Curtis Williams and Emily Chow; editing by David Evans).
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ONEOK's first-quarter profits are marginally lower due to higher operating costs
ONEOK, the U.S. pipe-line operator, reported a marginal drop in its first-quarter profits on Tuesday. This was due to higher operating costs and divestments. In extended trading, shares were down 3.7% to $84.60. Operating costs for the first quarter of 2018 increased by 32%, to $752 millions. This was mainly due to higher employee expenses. Over the last two years the company has diversified its portfolio by acquiring assets, such as a Gulf Coast NGL pipe system from Easton Energy or Medallion Midstream or EnLink Midstream. ONEOK will begin transporting refined products, oil and other petroleum products in 2023 after acquiring Magellan Midstream for $18.8 Billion. ONEOK's 60,000-mile network of pipelines transports crude oil, refined products, and natural gas. In 2024, the company also sold three natural gas pipelines to DT Midstream in exchange for $1.2 billion cash. The quarterly adjusted core profits for all four segments increased due to higher contributions from the acquisitions of EnLink, Medallion and Medallion. The company expects a net profit of $3.21 to $3.69 billion for the current year. The Tulsa-based company, which has its headquarters in Oklahoma, reported a net profit attributable of 636 million dollars, or $0.04 per share for the quarter that ended on March 31. This compares to $639 million dollars, or $1.0 per share a year ago. Tanay Dhumal in Bengaluru and Mrinalika Roi reported the story.
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Mexico's Olmeca will restart its refinery and the halt was "nothing serious," says President.
Mexico's new Olmeca refining plant is ready to resume production, Mexican president Claudia Sheinbaum announced on Tuesday. She denied that the temporary outage was caused by sabotage at its catalytic unit. The Olmeca Refinery, located in the port of Dos Bocas is still a long way from achieving the goals for gasoline and diesel set by Sheinbaum’s predecessor. The president said "It's nothing like that" in response to a reporter's question about alleged sabotage by the state-owned energy company Pemex. He did not provide any further details. The catalytic unit is a key part of the refinery which produces gasoline. It uses fluidized catalysts to break heavy hydrocarbon molecules down into gasoline molecules. Sheinbaum stated that she would have a Pemex representative report back on the incident. It's not that the refinery has suddenly stopped working. She said, "It's not a big deal. It was producing 100,000 barrels per day, and it is about to restart. It's not serious." Pemex has not responded to an information request about events at the refinery. The date of any incidents or current production levels were also not provided. In February, the refinery processed only 6,797 barrels per day (bpd) and in January none at all. The company had reported that the pumps for crude oil Pemex were leaking more salt and water than usual. The refinery has the capacity to process up to 340,000 bpd. Processing has been marginal since June 2024. Last week, it was reported that Pemex had exported two shipments ultra-low sulfur diesel (ULSD), processed at Olmeca. This is because the infrastructure required to distribute motor fuels that Mexico imports has not been completed. (Reporting and writing by Ana Isabel Martinez, Rafael Escalera Montoto, Editing by Stefanie Eschenbacher and Alistair Bell).
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Deep-sea Mining Company is the first company to request international permits from Trump
The Metals Co, a deep-sea miner, asked Tuesday for the Trump administration to approve plans to mine international seabeds. This is the first time a company has sought permission from the government to operate outside U.S. territory waters. Last week, President Donald Trump issued an executive order to increase mining in domestic and international waters. The goal was to improve U.S. market access and to reduce China's control. The order is a violation to international law, according to China, and it has heightened tensions between Washington, the United Nations, and the International Seabed Authority. The world's oceans contain a large amount of polymetallic nodules, which are potato-shaped rocks that contain the building blocks of electric vehicles and electronic devices. Deep-sea miner supporters say that it will reduce the need for large land-based mining operations, which are not always popular with local communities. Environmental groups have called for the activity to cease, warning that industrial operations at the ocean's bottom could lead to irreversible biodiversity losses. Companies are already lined up to mine U.S. water. The Metals Co, based in Vancouver, asked the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration to issue a commercial recovery license under the Deep Seabed Hard Mineral Resources Act of 1981 for operations in a part of the Pacific Ocean known as the Clarion-Clipperton Zone between Hawaii and Mexico. The timing of the application coincided with an hearing Tuesday on deep-sea mines by a U.S. House of Representatives Subcommittee, at which Gerard Barron of The Metals Co testified. America urgently needs critical minerals. "It needs to secure these minerals," said Barron. He estimated that the company could remove more than one billion nodules with manganese and copper as well as nickel, cobalt, and cobalt, which would meet U.S. requirements for decades. Glencore has agreed that it will buy metals mined from the seabed. The Metals Co anticipates a first determination of whether the commercial application meets U.S. Regulatory requirements within 60-days, following which an environmental and technological review of the entire application will begin. The company also applied for 2 exploration licenses within the zone. NOAA representatives were not available for immediate comment. Greenpeace's Louisa Casson stated that the application will be remembered as a disregard for international law, scientific consensus, and encouraged other government to defend international laws and cooperate against "rogue deep-sea mines". The Metals Co shares fell 1.7% in trading on Tuesday to $3.25. HEARING Republicans organized the hearing, and many Republicans support the emerging deep-sea mine industry. Rep. Paul Gosar (a Republican from Arizona) said, "It can help America break free of the Chinese supply chain yoke and restore mineral independence." Democrats responded by calling deep-sea mines uneconomical, and "subsidized plundering" of oceans around the world. Maxine Dexter is an Oregon Democrat. She said, "The financial models of the industry are based on wildly unrealistic assumptions and do not reflect the volatility and realities of global mineral markets." Impossible Metals (a private company) told the hearing that it has no plans to continue operating without further environmental testing. A Massachusetts Institute of Technology engineering expert told the hearing that the effects of deep sea mining might not be as bad as people had thought, but said the practice needed robust regulation. (Reporting and editing by Nia William; Ernest Scheyder)
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Colombian oil and Gas Group proposes measures to mitigate E&P decline
The main Colombian oil, gas and energy service companies' guild proposed several measures on Tuesday to reduce the decline in exploration and production of oil (E&P) and to tackle the natural gas shortage in South America. Campetrol proposes a number of measures, including declaring offshore gas projects essential for future supply, adjusting contract terms to encourage increased production, as well as maximizing project lifespan. Why it matters The guild has warned that blockades, extortion and labor regulations have increased operating costs, which are compromising sector competitiveness. This is a threat to the short-term self-sufficiency of the country. The Colombian gas imports are only a part of the total demand. By the Numbers According to the latest figures from the National Hydrocarbon Agency, Colombian oil reserves will fall 2.6% by 2023, to 2.0 billion barrels of crude oil, or 7.1 years worth of consumption. Gas reserves, which are crucial to President Gustavo Petro’s desire to transition to renewable energies, fell 15.8% to 2.4 trillion cubic foot in 2023, equivalent to 6.1 years' consumption. KEY QUOTES Nelson Castaneda (President of Campetrol) told reporters that the proposal was based on rigorous evidence and aimed at preserving the economic and technical sustainability of the sector. CONTEXT Petro's government, which he assumed office in 2022 and is now focusing on solar and wind power, wants to reduce the dependency of the country on fossil fuels. The Colombian economy benefits from fossil fuel exports, taxes, and royalties. However, the energy shift is happening despite these incomes. (Reporting and writing by Nelson Bocanegra, Editing by Aida Pelaez-Fernandez, Marguerita Choy).
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What could be causing the Iberian Power Outage?
A massive blackout in Spain, Portugal, and parts of France has halted trains and bank machines, as well as traffic lights. It was one of the biggest power system failures ever seen in Europe. Cyber Attack? The Spanish grid operator Red Electrica has ruled out cyber attacks as the cause, but the High Court of Spain said that it will open an investigation in order to determine the reason. Spain's Prime Minister Pedro Sanchez Red Electrica said on Tuesday that just because it had ruled out any cyber attacks on its systems did not mean they could not have occurred. EXPLAINATIONS SO FAR Red Electrica reported that it had identified at least two incidents in southwest Spain of power loss caused by solar plants. This led to instability in the electrical system, and a breakdown in its interconnection with France. Electrical system collapsed, impacting both Spanish and Portuguese systems. During the power outage, Spain exported electricity to France and Portugal. The exports to France reached close to their net export capacity up to 1000 local time. Red Electrica data shows that exports to France ceased at 1235 local times, from 868MW earlier. On Tuesday, EU Energy commissioner Dan Jorgensen announced that the European Union would begin a comprehensive investigation into the power outages occurring in Spain and Portugal. The Spanish grid is connected to those of France and Portugal as well as Morocco and Andorra. What causes power outages? Extreme weather conditions such as high winds, storms or lightning are the most common causes of unplanned power cuts that disable electricity on a wide scale. At the time of the collapse on Monday, it was a fair day. When there are faults in power stations, distribution lines, or substations, they can cause power outages. To ensure stability, the flow of electricity between systems is kept at 50 Hertz. Backup systems will disconnect power generation sources and other assets from the grid if that level changes. SPAIN'S ENERGY MULTIPLE Data from the think tank Ember show that Spain is among Europe's largest producers of renewable energy. It relies on wind and sun for 43%, which is well above the average global rate. Red Electrica's data shows that solar photovoltaic (PV), wind, and nuclear power plants made up 59% of Spain’s electricity during the blackout. Solar PV was 50%, wind 3% and nuclear almost 15% on the same date last year. The data revealed that in just five minutes between 1230 and 1035 local time (1030-1035 GMT), on Monday, the solar PV production dropped by over 50%, from 18 gigawatts to 8 GW. The cause of the drop is unknown. What factors could be involved? Experts and industry sources stated that the Spanish grid had very little inertia. Inertia is the energy stored in large rotating steam or gasoline turbine driving and rotating generators. It acts as a cushion as it can be quickly used to compensate sudden changes in supply or demand. Solar provides a small rotating mass for the grid. Around 5% of Monday's electricity was generated by gas-fired generators. In Spain, coal generation will be phased out by 2025. The largest coal-fired plant in Spain was shut down last year. How can power be restored? A "black start" is the process of restoring electricity after a major outage. This involves slowly restarting each power plant and reconnecting it to the grid. Spain increased its power imports and turned on more hydropower and gas plants as it tried to regain power. EXCESS RENEWABLES? The collapse on Monday has led to a debate over whether the volatile supply of solar and winds has made Spain's electricity systems more susceptible to an outage. The Prime Minister Sanchez stated on Tuesday that there is no problem with excess renewable energy. He added that the demand was low at the time of blackout and there was an ample supply. EU Commissioner Jorgensen The cause of the blackout can't be attributed to a particular energy source. The rapid growth of renewables has led to grid overloads during periods with high sunlight and low demand. Wholesale electricity prices have sometimes fallen to zero or even negative, forcing solar farms into a reduction of their output. Analysts predict that solar farms will continue to expand in Spain and Portugal, resulting in a rise in negative price-hours in 2025 (reporting by Nina Chestney and Pietro Lombardi; editing by Jason Neely and Susan Fenton; and Gareth Jones).
Shanghai copper prices surge on the back of dwindling stock
Reports citing four traders indicate that copper inventories at the Shanghai Futures Exchange will continue to fall this week. This would be a continuation of the steep drop, and could trigger a price spike.
Traders said that the surge in prices for ShFE copper, an important metal used by China's massive manufacturing sector, would attract more metal into the exchange warehouses. This will make a complete depletion of the stock unlikely.
Yangshan copper premium is already tightening up.
Copper inventories in the ShFE
A trader said that ShFE copper stock could drop another 10,000 tons if warehouse stocks are released two days earlier on Wednesday than normal due to public holidays in China between May 1 and May 5.
Copper was diverted to the U.S. by traders in response to a tariff threat on U.S. imported copper. This led to a decline in ShFE stock and a rise in COMEX prices.
COMEX stock grew to 137 759 tons of metric tons.
COMEX inventories increased as a result of the tariff threat against U.S. imports, and the anticipation of higher COMEX prices.
Due to U.S.-China tensions over trade, consumers are finding it difficult to get supplies on a crowded Chinese market. This is because the United States has been cut off as a major scrap metal source, causing inventories to drop.
Copper prices are usually higher on the ShFE than the COMEX because of differences in demand and supply in China and in the U.S., as well as other factors such freight and taxes.
Since mid-March the COMEX copper price has been higher because of the buying frenzy due to import tariffs.
The traders expect that the price-relationship will return to normality as the Chinese inventory replenishment takes priority.
A trader stated that the prospect of higher ShFE prices could also attract metal stored in Shanghai’s bonded storage warehouses
On April 24, stocks were 75,500 tonnes. This was a 5% drop from the previous week but still nearly five times higher than January 16's record low of 15,200 tones. (Reporting and editing by Sumana Niandy; Violet Li, Lewis Jackson)
(source: Reuters)